Singaraja – Investing in information technology and fostering corporate innovation are key strategies for increasing firm value in the mining industry. This conclusion comes from a study conducted by Ni Made Deni Keristina, Desak Nyoman Sri Werastuti, Anantawikrama Tungga Atmadja, Putu Sukma Kurniawan, and I Made Pradana Adiputra from Universitas Pendidikan Ganesha, published in 2026. The research found that mining companies that consistently invest in information technology while strengthening innovation achieve higher firm value by improving operational efficiency and reinforcing investor confidence in their long-term growth potential.
The mining industry is one of Indonesia's most strategic economic sectors, contributing significantly to national revenue through exports, taxation, and non-tax income. In recent years, the industry has undergone major transformation due to rising global demand for critical minerals needed in electric vehicles, battery production, and renewable energy technologies. Despite its promising prospects, mining companies continue to face challenges such as commodity price volatility, regulatory changes, and global economic uncertainty. These conditions have encouraged companies to adopt advanced technologies and continuously innovate in order to strengthen competitiveness and enhance firm value in the eyes of investors.
To examine the influence of these factors, the researchers employed a quantitative approach using secondary data collected from the annual reports of mining companies listed on the Indonesia Stock Exchange during the 2019–2023 period. Out of 76 mining companies, nine were selected through purposive sampling, resulting in 45 observations. The data were analyzed using multiple linear regression with SPSS after the model successfully passed the normality, heteroscedasticity, and multicollinearity tests.
The findings revealed that information technology investment has a positive and significant effect on firm value. The regression analysis produced a coefficient of 0.553 with a significance level of 0.003, indicating that greater investment in information technology leads to higher firm value. According to the researchers, technology investment enables companies to improve operational efficiency, accelerate business processes, enhance data accuracy, and strengthen their ability to respond to the rapidly changing mining industry.
The study also found that corporate innovation positively and significantly influences firm value. Innovation recorded a regression coefficient of 0.044 with a significance value of 0.011, demonstrating that companies that continuously improve their technologies, processes, and products receive more favorable market valuations. Innovation helps organizations improve efficiency, strengthen competitive advantage, and send positive signals to investors regarding their future growth prospects and ability to adapt to changing business environments.
According to the authors, investment in information technology serves not only as an operational improvement strategy but also as a powerful signal to investors. Companies that actively develop digital systems, automation technologies, data analytics capabilities, and integrated information systems are viewed as being better prepared to manage risks, improve transparency, and achieve sustainable growth. These positive perceptions strengthen investor confidence, increase stock prices, and ultimately contribute to higher firm value in the capital market.
Corporate innovation also plays a crucial role in maintaining long-term competitiveness. The development of new technologies, continuous process improvements, and product innovation enables mining companies to optimize resource utilization while responding more effectively to market changes. Investors generally perceive innovative companies as having stronger growth potential and greater resilience, making them more attractive investment opportunities.
The researchers emphasize that these findings offer important implications for mining companies across Indonesia. Organizations are encouraged to continue expanding investments in information technology to improve operational efficiency, reporting transparency, and data-driven decision-making. In addition, companies should allocate sustainable budgets for innovation, establish dedicated innovation teams, and strengthen employee competencies through continuous technology training. These strategic initiatives are expected to enhance competitiveness while creating sustainable firm value in an increasingly dynamic global mining industry.
Author Profile
Ni Made Deni Keristina, Desak Nyoman Sri Werastuti, Anantawikrama Tungga Atmadja, Putu Sukma Kurniawan, and I Made Pradana Adiputra — Universitas Pendidikan Ganesha, Singaraja, Indonesia.
Research Source
Article Title: Firm Value in The Mining Sector: The Role of Information Technology Investment and Corporate Innovation
Journal: East Asian Journal of Multidisciplinary Research (EAJMR), Vol. 5, No. 7, 2026.
DOI: https://doi.org/10.55927/eajmr.v5i7.180
Journal Link: https://journaleajmr.my.id/index.php/eajmr
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